"At the moment it is in very early stages and we are still trying to work through a lot of the figures," Mr Lane said.

According to the company's own paperwork it could optimistically expect to receive a surplus of $2.3 million from the sale of its assets in the main holding company, Flynn Transport Pty Ltd, which may go a long way towards covering outstanding employee entitlements.

It's unknown how long the liquidation process could take.

60 left out of work as company shuts down

ALSTONVILLE-based Flynn Transport has suddenly shut its gates after 27 years this morning, leaving more than 60 people jobless.

Employees were informed at a staff meeting that the business was struggling with debt problems and director and founder Tony Flynn had opted to liquidate the company's assets.

Mr Flynn told The Northern Star he had made the decision to close the company only last Monday after discovering that the business was unsustainable due to "legacy tax debt".

Flynn Transport:
ALSTONVILLE-based Flynn Transport has suddenly shut its gates after 27 years this morning, leaving more than 60 people jobless.

He said the issue wasn't identified until the company had a "complete overview" of its finances earlier this year.

"We could have kept trading for another six months but there was no point continuing if the business was continuing to rack up debt," Mr Flynn said.

Forensic accountancy firm Worrells has been appointed to liquidate the company and its staff were on-site at the company's Kays Lane headquarters this morning carrying out boxes of paperwork and inspecting trucks.

According to a declaration of solvency filed with the Australian Securities and Investments Commission last Friday, the company has assets worth $9.75 million, and $7.4 million in liabilities, which includes $206,000 owing to unsecured creditors.

That leaves a surplus of $2.3 million, according to the company's paperwork.

However, Mr Flynn said he couldn't guarantee that employees would receive their full redundancy entitlements or outstanding superannuation obligations from the company, but pledged to do "all I can".

That's because Flynn Transport comprises three ASIC-registered companies, not one.

According to Worrells, the two other companies were insolvent: Flynn Transport (NSW) Pty Ltd, the trading entity, and NSW Employment Company Pty Ltd, the employment company.

These companies have been placed into a creditors' voluntary liquidation.

Both have liabilities which outweigh their assets including substantial unsecured creditor debt (which includes employees' entitlements).

Mr Flynn said "part of the reason" for the company's situation was a former employee who was currently under investigation by NSW Police.

The news has devastated the company's loyal workforce of some 50 drivers and 10 office staff, the vast majority whom live locally.

Driver Paul Elvin said he had been with Flynn for six years and was told out of the blue last Wednesday there was no more work.

Flynn Transport driver Paul Elvin following a meeting where he was told he no longer had a job after the company prepares to go into liquidation.Marc Stapelberg

Mr Elvin took out a fresh mortgage on a Goonellabah home six months ago and will have no income in two weeks.

"I rang the bank and they said I've got two months, otherwise I'll lose the house," he said.

"There's 50 drivers out of work in a small town and we're all fighting for the same jobs."

Mr Elvin said he was angry about not being paid his full entitlements. He estimated he was owed about $20,000 in unpaid superannuation.

Fellow driver Kerry Howe described the news as "gut wrenching".

"I'm on my eighth year (at Flynn)," he said.

"The rug's been pulled out from under us."

Mr Howe said at its peak last year the company had almost 120 staff working 70 trucks and 120 trailers, but had downsized in recent months.

He estimated he was still owed two and a half years' worth of unpaid superannuation.

Darren Goodwin said he'd been at Flynn since 2009, and felt "crushed".